FAS Proposes to Revise the Refined Sugar Re-Export Program, the Sugar-Containing Products Re-Export Program, and the Polyhydric Alcohol Program
The U.S. Department of Agriculture's (USDA's) Foreign Agricultural Service (FAS) has issued a proposed rule that would revise the Refined Sugar Re-export Program, the Sugar-containing Products Re-export Program, and the Polyhydric Alcohol Program, which are administered under 7 CFR 1530.
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(According to FAS, these three programs permit licensed participants to purchase raw sugar on the world market for either export or use in the production of certain polyhydric alcohols. The raw equivalent of the program sugar exported or used may be replaced by raw cane sugar imported under HTS 1701.11.20. FAS notes that HTS Chapter 17, Additional U.S. Note (AUSN) 6 authorizes entry of such raw cane sugar under HTS 1701.11.20.)
Proposed Rule Would Improve Programs' Administration, Reflect Changes in the Sugar Sector
FAS states that the proposed rule would totally revise the current regulations at 7 CFR 1530 in order to improve program administration and reflect changes in the sugar sector.
According to FAS, the proposed rule would (partial list):
allow the transfer of export credits between refined sugar re-export licenses. This would allow a refiner that has not exported program sugar to purchase credits from a refiner that has, in order to import raw cane sugar.
allow holders of refined sugar re-export licenses to hold sugar-containing product re-export licenses. Multiple licenses would not increase the refiner's overall license limit of credits and charges.
allow third-party exports. License holders, however, would be required to pre-register third-party exporters on their licenses and provide for the third-party export transactions in their documentation agreements.
allow toll refining. Licensed manufacturers of sugar-containing products would be allowed to buy raw cane sugar on the world market and pay a licensed refiner to enter it into the U.S. and refine it to contract specifications.
create a new class of licenses for entities that produce ingredients from sugar for the food industry. FAS states that the license would be issued under the refined sugar re-export program and would allow the purchase of program sugar from refiners. Such ingredients could be sold only to holders of sugar-containing product re-export licenses. Holders of the new license would neither be able to import raw cane sugar nor export program sugar or sugar-containing products for program credits.
This new class of license would be called a "Class B Refined Sugar Re-export Program license" to differentiate it from the regular refiner's license which is called a "Class A Refined Sugar Re-export Program license."
would require licensees to provide independent laboratory verification of the sugar content of products transferred and/or exported upon request of the Licensing Authority.
(See ITT's Online Archives or 05/07/03 news, 03050720, for BP summary of FAS' advance notice of proposed rulemaking (ANPR) seeking comments on proposed changes to the sugar re-export program.
See ITT's Online Archives or 06/14/04 news, 04061410, for BP summary of U.S. Customs and Border Protection's (CBP's) administrative message stating that the USDA license number for HTS 1701.11.20 sugar must be reported in the Automated Commercial System (ACS) effective June 23, 2004.)
- comments should be received on or before March 22, 2005
FAS contact - Ron Lord (202) 720-2916
FAS proposed rule (FR Pub 01/21/05) available at http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/05-1068.pdf